The Life Settlements Report - May 15, 2008

Maturing Market, Public Policy Concerns Also Slow Sales

Life settlement brokers and providers say that funding has tightened for the purchase of insurance policies due to the credit crunch that has rocked financial markets worldwide.

Life insurance policies still are selling on the secondary market, but brokers are not seeing as many offers as a year ago. And the offers often have short time frames, meaning that sellers must decide quickly whether to accept them or face losing the deal.

Over the last decade, the life settlement market has dramatically expanded due, in part, to the growth of participation by institutional investors. As the life settlement market has evolved, so have new transaction structures. Under one such structure, known as a trust interest purchase, investors acquire all of the beneficial interests in an irrevocable life insurance trust, or ILIT, which holds a life insurance policy as its sole or primary asset. Because the owner of the policy is not changing, the purchaser of a trust interest does not need to notify the insurance carrier of the transfer of an interest in the death benefit. Full Story

Request Made in Midst of Legislative Activity

With only three days notice, life settlement providers who do business in Ohio have complied with the state insurance department's request for information on how many policies they've purchased in the state and nationally during the last four years. Full Story

• Home Buyers Selling Policies to Fund Down Payments
• Oklahoma, Connecticut Legislatures Pass NCOIL Bills
• Iowa Governor Signs Bill Curtailing Life Settlements
• Life Settlement Solutions to Quit Buying Policies in Several States
• Life Settlement Legislation Dies in Louisiana Committee
• Baring Adds Life Settlements to Its Funds
• Rumson Capital Promotes Meyer to President, Names Shelbaugh EVP
• IFG Insurance Forms Alliance with National Financial Partners
• BlueCrest Picks Advanced Underwriting as Medical Underwriter
• Maple Life Financial Hires Business Development Director
• Ohio Broker Hires New Compliance Director
• MLF LexServ Hires Vice President
• Recruiting Firm Premiere Offers Temporary Staffing
• LISA Says Producers' Groups Are Acting Against Members' Interests